New Delhi, Oct. 17 -- The European Central Bank (ECB) is expected to raise interest rates by a cumulative 50 basis points by the first half of 2027 as elevated energy prices and persistent services inflation keep price pressures above target, according to a research report by ICICI Bank Global Markets.

The report said the ECB could deliver another 25 basis points rate hike before the end of 2026, followed by a further 25 basis points of tightening in the first half of 2027, assuming energy and commodity prices remain elevated.

Eurozone headline inflation, measured by the Harmonised Index of Consumer Prices (HICP), accelerated to 3.8 per cent year-on-year in September from 3.2 per cent in August, driven largely by a sharp increase in ene...